Nigeria’s oil output wobbles after 10yrs of increase in rigs
There are indications that increased deployment of oil rigs in Nigeria has not translated into corresponding rise in crude oil production. Rig count, an important indicator of exploration and production activities, is generally expected to support higher crude oil output as operators drill new wells, maintain existing assets and develop additional reserves. But official records ...
Recent data reveals that increased oil rig deployment in Nigeria has not led to a corresponding rise in crude oil production. The rig count, a key indicator of exploration and production activities, was at its highest in 2018 with 360 rigs, but declined to 87 rigs in 2021, the lowest during the period from 2016 to 2026. Despite the billions of dollars invested, Nigeria's oil output has remained stagnant since 2016, fluctuating between 1.143 million to 1.734 million barrels per day.
In June 2026, average oil output from five mature producing fields dropped by 20.8 percent year-on-year, indicating the strain on national production and revenue. The decline is attributed to the maturity of oil fields, which experience declining reservoir pressure, increased water production, and falling output. There are indications that many fields have experienced significant depletion since Nigeria's first commercial oil discovery in 1956, leading to unstable and declining output.
Major oil companies like Renaissance and Eni acknowledged the natural production decline associated with their mature fields, but emphasized their commitment to optimizing production and maximizing value. Nigeria's influence within OPEC has weakened as production has remained below historical levels, despite post-Petroleum Industry Act investment efforts.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
